The Australian Government recently announced cash flow assistance measures for small and medium businesses in response to the Coronavirus.
This assistance will be vital to the survival of many businesses over the coming months.
To ensure that your business is best positioned to come through this period of economic uncertainty, you should update your business and personal cash flow forecasts on a weekly basis so you can get an accurate picture of the future including any cash flow shortfalls giving you maximum time to address them.
Below is a summary of one of the key measures which we hope you find useful in working out the cash flow assistance available to your business as part of budgeting your cash flow over the coming months.
Supporting Apprentices and Trainees
What is it?
The Supporting Apprentices and Trainees initiative will provide cash flow assistance to eligible employers to help them retain their apprentices and trainees.
Is my business eligible?
To be eligible your business must have:
- Fewer than 20 full-time employees, and
- Retain at least one apprentice or trainee.
Employers will be able to access the subsidy after an eligibility assessment is undertaken by an Australian Apprenticeship Support Network (AASN) provider.
How much will my business receive?
- Can apply for wage subsidy of 50 per cent of the apprentice’s or trainee’s wage paid during the 9 months from 1 January to 30 September 2020, and
- Will be reimbursed up to a maximum of $21,000 per eligible apprentice or trainee ($7,000 per quarter).
When and how will my business receive assistance?
If you believe your business is eligible, you can register for the subsidy from early April 2020. Final claims for payment must be lodged by 31 December 2020.
David’s Plumbing is a small business that employs 10 people, including two full-time Australian Apprentices.
Taylor is a first year Australian Apprentice, aged 20, undertaking a Certificate III qualification. She commenced her apprenticeship with David’s Plumbing on 6 February 2020. Taylor receives a weekly wage of $532.89.
Lisa is a third year Australian Apprentice, aged 29, undertaking a Certificate IV qualification. She commenced her apprenticeship with David’s Plumbing on 18 November 2017. She receives a weekly wage of $772.71.
David’s Plumbing is eligible for Supporting Apprentices and Trainees which pays 50 per cent of the apprentices’ wages that have been paid by David’s Plumbing since 1 January 2020.
David’s Plumbing will receive:
- $9,059 subsidy for employing Taylor for 6 February 2020 to 30 September 2020; and
- $15,068 subsidy for employing Lisa for 1 January 2020 to 30 September 2020.
Struggling to forecast and manage your business cash flow? Click the button below to book a 1-hour complimentary meeting to find out how we can help you.
Source: Australian Government Economic Response to the Coronavirus Fact Sheet – Cash Flow Assistance for Small Business